by Dr Lisa | Theory of Constraints Finance, Accounting, and Cash Flow
The Role of Payment Terms in Cash Velocity To reduce the time it takes to collect payment from our customers we offer a 1%/10 option, but none of our customers use this option and many of them pay late which is why we have an average of 42 days. So we remain at 55...
by Dr Lisa | Theory of Constraints Finance, Accounting, and Cash Flow
Cash velocity is a component of the wider topic of cash flow. Both cash flow and cash velocity are like good health. When you have it, you don’t really notice. But for many companies the time between when they have to pay their vendor and when they get paid is large...
by Dr Lisa | Theory of Constraints Finance, Accounting, and Cash Flow
Cash to Cash Cycle Time The components of your cash-to-cash cycle time depends on your business but generally includes procurement, raw materials inventory, production, finished goods inventory, logistics, and your accounts receivable. To reduce cash-to-cash cycle...
by Dr Lisa | Theory of Constraints Finance, Accounting, and Cash Flow
I’m currently working on a book “Increasing Cash Velocity”. Goldratt doesn’t cover cash flow and it’s not even included under the topic of Throughput Accounting. It is however, one of the most important topics for business owners. 80% of...
by Dr Lisa | Theory of Constraints Finance, Accounting, and Cash Flow
The Fastest Way to Increase Cash Flow using Theory of Constraints and Throughput Accounting This week I have a new video for you. This video was taken during the TOCICO conference in Tacoma and this is the first time I’m making it available. Many of you listed...
